A reader writes: “I started trading 6 mths ago. I am pretty much at breakeven thanks to recent uptrend and my losing trades being small. There are more than 1000 counters in Singapore Exchange. How do I select stock to trade? Do I need to buy scanning software?”

First of all, congratulations - you're doing extremely well for a beginner. To answer your question, let's review three priorities in money management...

1. the first priority is survival
2. the second priority is grinding out small profits
3. the third priority is taking spectacular profit

You seem to have no problem with the first, but trying to skip the second and hop right over to the third.

Slow down. Stay with the second priority for a while, get it down good.

Set up your 'small profit taking machine' and be a rabbit hunter and make sure it works well.

Once you confidently operate at that level, with the passage of time, you can start looking at the third priority.

Beginners tends to be afraid to miss an opportunity, they start to find scanning software from the market which cost few thousand dollar and think that they can invincible.

Sorry to say that, You are been scammed.

A trader who doesn’t have a clear idea of how to trade a single stock will not be helped by tracking thousand stocks. He/She will be much better off focusing on a handful of stocks and following them every day.

It is a good idea to limit your pool of trading counters for beginners.

As for advance traders, Only you can tell what number is right for you, but you should track only as many as you can focus on.

Talk to you soon.

Best wishes,

Divergence Traders

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